■ MBB’s FY16 net profit rose 16.7% yoy, in line with our forecast, driven by 12.4% total operating income growth and a ~3% decline in provision expenses.
■ Robust loan growth (+24% yoy) was offset by a 12bp drop in NIM, but the bank’s NIM steadily improved throughout the year, as teaser rates on retail loans rolled off.
■ Management targets 18% pre-tax profit growth in FY17F, which is below the bank’s potential, in our view.
■ We maintain our Hold rating on MBB. Potential catalysts are management setting more aggressive growth targets and/or better results in 1H17F.
